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Investing in Emerging Markets with Consumer Protection in Mind

Foreign Policy Blogs - Mon, 18/05/2015 - 23:25

Demonstrators march in Sao Paulo against corruption and the government of president Dilma Rousseff. Photograph: Bosco Martin/EPA Brazilian president Dilma Rousseff’s Workers Party is on the defensive as the Petrobras case threatens to expose political corruption. Photograph: Jonathan Ernst/Bloomberg State-controlled oil giant Petrobras has racked up the corporate world’s biggest debt – estimated at around €137 billion by Moody’s. Photograph: Sergio Moraes/Reuters

The concept of the fair market and protection for consumers is based on the idea that inefficient and corrupt practices by large private companies and wayward government officials increases the cost to the consumers and the public. When the construction of a facility meant to benefit the public goes overbudget, the public ends up bearing most of the burden. The companies involved may also lose investment. Competitors, meanwhile, do not to benefit from a market fixed against their products or services, and the company that might have been able to do the job right in the first place may lose business or go bankrupt if unable to compete in a fair market. Consumer protection agencies, government-run officials, and ombudsmen defend the public’s interest, not to mention the interests of the consumer, in challenging corrupt practices in order to balance out the market and actors within it.

The Economist recently published an article on how necessary compliance measures have become such a large industry that the benefit of the enforcement action may cost the affected parties more than the offense itself. The author’s recommendations on how to streamline enforcement is rooted in a sound argument, but the example used, namely the fine given to the German company Siemens  for handing out bribes in emerging markets, should be discussed in further detail.

Often companies investing in foreign countries are not wholly limited their home country’s laws, in this case Germany, as they are subject to the laws of that jurisdiction. In some emerging economies, it is well known by local industry and foreign investors that some investment is limited by corruption. So, in order to do business in many emerging economies, companies like Siemens bribed local officials so as to crack into those growing markets. While entirely illegal in the EU and enforced by German officials, in some countries the lack of enforcement and acknowledgement of consumer protection goals leaves those who wish to play fair on the losing end of their investment.

Brazil is one of the best examples of an emerging market that has been trying to change the way business is conducted. The clearest example of this can be found in the country’s ongoing Petrobras scandal, which may even bring down the government because Brazilians are openly refusing to accept companies, not to mention a government, that wants to keep corrupt practices alive. It involves several high-ranking oil company officials, as well as other large Brazilian companies and the ruling PT party, and it illustrates how corruption and a complete lack of consideration for the public’s interests has driven an entire society into a downward economic spiral. (A detailed account in English can be read here.)

Brazilians were livid when they found out that government officials and kickbacks to Petrobras executives had raised the cost of national projects several times over. Protests broke out when investigators showed that the members of the governing PT party were profiting from the same scheme. The costs of living for the average Brazilian heavily outstripped their real wages and little action and investments were going towards improving this situation. With the revelations of corruption, Brazil’s legal community has gone not only after Petrobras, but also the other companies involved in the scandal, the country’s ruling party, and possibly the president herself.

Brazil’s burgeoning judicial independence will play a huge role in this case as resolving the Petrobas scandal is a matter of overturning a tradition of corruption in the country so that consumer protection and a respect for the public becomes a principle legal standard. Hopefully, once the culture is changed and consumer protection and public trust is achieved, the issues of an overbearing compliance industry can be addressed.

Participants at OSCE conference in Vienna discuss ways to counter intolerance, discrimination against Christians

OSCE - Mon, 18/05/2015 - 23:21

VIENNA, 18 May 2015 – Representatives from civil society, governments and international organizations explored the challenges, including discrimination and hate crime, Christian communities face in the OSCE region at a conference held in Vienna on 18 May 2015.

The “Conference on Enhancing Efforts to Prevent and Combat Intolerance and Discrimination against Christians, Focusing on Hate Crimes, Exclusion, Marginalization and Denial of Rights” was organized by the OSCE Serbian Chairmanship and the OSCE Office for Democratic Institutions and Human Rights (ODIHR).

“We would like to highlight the importance of raising awareness of the value of cultural and religious diversity as a source of mutual understanding and respect for different cultures, ethnicities religious and believes,” said Ambassador Vuk Žugić, Chair of the OSCE Permanent Council and Serbia’s Permanent Representative to the Organization, adding that Serbia has a special interest in promoting this, given that its Christian heritage has suffered great, and many times irreparable damage throughout the tumultuous recent history in the Balkans.

ODIHR Director Michael Georg Link stressed that ODIHR’s annual reporting has illustrated gaps in the information provided on hate crimes committed against Christians, as well as his hope that the discussion at the conference would help provide ways to address these gaps. 

"We look forward to the recommendations that will emerge from this conference, which will help efforts to counter intolerance against Christians," Director Link said. "There are still too many barriers to developing policies and initiatives to challenge intolerance against Christians. ODIHR is ready to continue its efforts to help participating States the recording of data on hate crimes against Christians – data that can then guide policymakers in preparing the most effective response to this problem."

Discrimination and intolerance threaten the security of individuals and can give rise to wider scale conflict and violence, undermining regional and international stability and security, participants at the conference said. At the conference, they examined how co-operation and trust among law-enforcement agencies, criminal justice practitioners and Christian communities can be enhanced, to ensure that there is an effective body of laws, policies and practices that addresses hate crimes and intolerance faced by Christian communities across the OSCE region.

“Hate crimes against Christians are often under-reported,” said keynote speaker Massimo Introvigne, Managing Director of the Center for Studies on New Religions (CESNUR) and former OSCE Chairman-in-Office's Personal Representative on Combating Racism, Xenophobia, and Discrimination, also Focusing on Intolerance and Discrimination against Christians and Members of Other Religions.Better co-operation between Christian communities, police, government and ODIHR is needed in order to raise awareness and confront this very serious phenomenon.”

OSCE participating States have acknowledged the need to counter specific forms of intolerance, including against Christians and members of other religions. The 2005 Cordoba Declaration by the OSCE Chairperson-in-Office addressed intolerance against Christians specifically, and has been supplemented in subsequent OSCE Ministerial Council Decisions. Today’s conference in Vienna builds on the work done during a high-level meeting in Rome, in 2011, on preventing and responding to hate incidents and crimes against Christians.

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Categories: Central Europe

Flüchtlinge im Mittelmeer: EU beschließt Militäreinsatz gegen Schlepperbanden

Euractiv.de - Mon, 18/05/2015 - 23:06

Die EU-Außenminister haben sich auf konkrete Pläne für eine Militärmission im Mittelmeer gegen Schleuserbanden geeinigt. So wollen sie das massenhafte Ertrinken von Flüchtlingen Einhalt gebieten. "Schlicht verrückt" und "unkontrollierbar" bezeichnen Kritiker das Vorhaben.

Categories: Europäische Union

Latest from OSCE Special Monitoring Mission (SMM) to Ukraine based on information received as of 19:30 (Kyiv time), 17 May 2015

OSCE - Mon, 18/05/2015 - 23:05

The SMM continued to observe ceasefire violations in and around Donetsk airport, albeit of reduced intensity.[1] Throughout the SMM’s presence at two observation points near the village of Shyrokyne the situation was relatively calm. The SMM heard on 15 May three explosions whereas no ceasefire violations were registered on 16 and 17 May. However, the Joint Centre for Control and Co-ordination (JCCC) in Donetsk reported instances of mortar shelling in Hranitne (government-controlled, 57km south of Donetsk) and Chermalyk (government-controlled, 72km south of Donetsk). The senior representatives of the Ukrainian Armed Forces and the Russian Federation Armed Forces at the JCCC in Donetsk jointly reported 27 ceasefire violations in and around Donetsk airport and 25 violations in and around the area of Shyrokyne (20km east of Mariupol) involving mortar, tank and small arms and light weapons (SALW) fire for the period between 00:00 and 12:00hrs on 16 May.

While on route south of Olenivka (“DPR”-controlled, 21km south-west of Donetsk) the SMM observed that the defensive positions in the areas around both “DPR” and government-controlled checkpoints were reinforced, and signs warning of mine danger were posted along the side of the road near the checkpoints, on both the “DPR” and Ukrainian Armed Forces side.

On 16 May the Ukrainian Armed Forces at a checkpoint prior to the government-controlled Stanytsia Luhanska bridge (16km south-east of Luhansk) informed the SMM about incoming artillery and sniper fire from “Lugansk People’s Republic” (“LPR”)-controlled territory the same day. The SMM observed damage consistent with artillery shelling to the roof and walls of a house next to the checkpoint. Two mortars (probably 60mm) that allegedly struck the concrete wall of the house next to the checkpoint were also presented to the SMM. 

On 17 May the SMM went to Stanytsia Luhanska after being informed of possible fighting in the area around 10:30hrs. The SMM spoke to two uniformed and masked “LPR” members at an “LPR” observation point, who stated that they sustained shelling on the night of 16 May, from 04:00 to 05:00hrs. The interlocutors further stated that on 17 May from 09:00 to 10:00hrs, they sustained fire from a machine gun. According to the interlocutors the small-arms fire originated from the old railway station in government-controlled territory. Six civilian interlocutors, four teenagers and two elderly males, who live in the area of Stanytsia Luhanska informed the SMM that they had heard shooting in the area on 16 May.

The SMM also spoke with the commander of the government-controlled checkpoint at the bridge in Stanytsia Luhanska.  He said that on 16 May between 20:00 and 00:00hrs on 17 May there had been intensive mortar shelling from “LPR”-controlled territory into Stanytsia Luhanska.  According to the interlocutor no injuries had been reported. The SMM observed two houses close to the checkpoint which had been completely destroyed and the statue on the bridge was severely damaged.

On 17 May Ukrainian Armed Forces soldiers at a checkpoint in the vicinity of Zolote (government-controlled, 60km north-west of Luhansk) said that on the night of 16 May between 21:00-23:00hrs, there were 20 mortar rounds fired at them from “LPR”-controlled territory, but that they did not sustain any casualties. The SMM observed two craters caused by 80mm mortar shells approximately 50 metres west of the checkpoint. The craters were approximately 80 to 100 centimetres wide and from the signs of the impact the mortar shells came from a southerly direction. The Ukrainian Armed Forces personnel staffing the checkpoint said that on the night of 15 May, between 21:00 and 01:00hrs they also sustained shelling from “LPR”-controlled territory.

The SMM met with the “LPR” “border guard chief of staff” in Luhansk who said that at this stage the “LPR” “border guards” have still not reached full staffing to completely take over control of the border between Ukraine and the Russian Federation from the Cossacks. He said that there were problems finding suitably qualified members. According to the interlocutor border crossing points have all been turned over from Cossack units to the “LPR” “border guards” with the exception of Chervonopartyzansk border crossing point (64km south-east of Luhansk), which is currently under control shared between “LPR” and  Cossacks.

The SMM met with the head of “LPR”-controlled Krasnodon (43km south-east of Luhansk) “border guards” detachment. Regarding SMM’s access to the border zone, the interlocutor stressed that he had received a clear order from his higher command not to permit the access of the SMM without a “letter of access” issued by “LPR” structures, although he suggested that an interim arrangement might be possible.

The SMM revisited six “DPR”-controlled heavy weapon holding areas. At three sites all earlier recorded weapons were in situ. At three sites the SMM found weapons that had been missing on the previous visit and had been said to be taken for the parade of 9 May. The now returned weapons included four multi launch rocket systems (MLRS-BM 21 GRAD), two self-propelled howitzers (2S1 GVOZDIKA) and five artillery pieces (2A65 MSTA-B). All of the above weapons were newly painted and some with orange and black-striped ribbons. At one of the three latter sites, the “DPR” commander in charge informed that one additional artillery piece (2A65 MSTA-B) – previously not recorded by the SMM – was missing. At another site, the SMM noted that, compared to the record of the previous visit, one artillery gun (D-30) was missing. The “DPR” member in charge of the holding area stated that it had been transported to the training area near “DPR”-controlled Torez (60km east of Donetsk) for training purposes. The locations of all visited holding areas comply with respective Minsk withdrawal lines.

The SMM also revisited six government-controlled heavy weapon holding areas. During its visits, the SMM observed that some of the heavy weapons previously recorded and accounted for, were missing, namely seven howitzers (152mm 2A65 “Msta-B”) at one site and three MLRSs (122mm “GRAD”). At the other five sites all earlier recorded weapons were in situ The locations of all sites comply with the respective Minsk withdrawal lines.

Despite claims that withdrawal of heavy weapons was completed, the SMM, as well as the SMM Unmanned Aerial Vehicle (UAV), observed the weapons movements/presence on both sides of the line of contact in the areas that are in violation of the Minsk withdrawal lines.

The SMM observed six main battle tanks (MBT) T-72 in different “DPR”-controlled locations in and around Donetsk city. The SMM saw also one stationary BMP-2 infantry fighting vehicle (IFV) with an anti-tank gun (120 mm).

The SMM UAV observed on 16 May in “DPR”-controlled areas east of Mariupol two MBTs (unknown type) and three self-propelled howitzers (122mm 2S1 Gvozdika). On the same day the UAV observed three military boats (unknown type) in a “DPR”-controlled area. On 17 May the UAV observed north-east of Mariupol in government-controlled areas one MBT (unknown type) and ten self-propelled howitzers (122mm 2S1 Gvozdika). Also on 17 May the UAV observed north-east of Mariupol in “DPR”-controlled areas seven MBTs (unknown type) and one anti-tank gun (100mm Rapira). In addition, the UAV observed three burning houses in Shyrokyne (20km east of Mariupol) the same day.

On 17 May the SMM monitored in Lviv a public prayer at the Hill of Glory memorial site by representatives of the Crimean Tatar community. Seven men and one woman gathered in remembrance of Abdul Teifuk, a Red Army Major and Hero of the Soviet Union fallen in 1945 in Germany, and buried in Lviv. There were no police present.

The SMM continued to monitor the situation in Kharkiv, Dnepropetrovsk, Odessa, Kherson, Chernivtsi, Ivano-Frankivsk and Kyiv.

 

* Restrictions on SMM access and freedom of movement:

The SMM is restrained in fulfilling its monitoring functions by restrictions imposed by third parties and security considerations including the lack of information on whereabouts of landmines.

The security situation in Donbas is fluid and unpredictable and the cease-fire does not hold everywhere.

  • The SMM was stopped by an armed “DPR” member at a checkpoint on Stratonavtiv street (9km north-west of Donetsk city). The person was acting aggressively and ordered the SMM monitors to exit the vehicle. The SMM vehicle’s trunk was searched and after approximately five minutes the SMM was allowed to proceed further.

                                                                                                                                                            

 

 

[1]   For a complete breakdown of the ceasefire violations, please see the annexed table.

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Categories: Central Europe

Draft opinion - An EU strategy for the Adriatic and Ionian region - PE 557.114v01-00 - Committee on Foreign Affairs

DRAFT OPINION on an EU strategy for the Adriatic and Ionian region
Committee on Foreign Affairs
Dubravka Šuica

Source : © European Union, 2015 - EP
Categories: European Union

Neues NGO-Netzwerk soll "bessere Regulierung" der EU-Kommission überwachen

Euractiv.de - Mon, 18/05/2015 - 22:41

Die EU-Kommission will ihre Gesetzgebung verschlanken, will eine "bessere Regulierung". Das ruft die Zivilgesellschaft auf den Plan: Jetzt gründen mehr als 50 NGos ein Überwachungsnetzwerk. Dessen Ziel: Es soll die Rechte von Bürgern, Arbeiternehmern und Verbrauchern schützen. EurActiv Brüssel berichtet.

Categories: Europäische Union

Russia Demands Release of 2 Alleged Servicemen Captured in Eastern Ukraine

RIA Novosty / Russia - Mon, 18/05/2015 - 22:41
The Russian Defense Ministry on Monday demanded that Ukraine stop the torture and release two of its nationals who were allegedly captured Sunday in southeastern Ukraine.






Categories: Russia & CIS

Pentagon: Islamic State On The Defensive, Just Not in Ramadi

Foreign Policy - Mon, 18/05/2015 - 22:28
As many as 500 Iraqis have been executed in the latest Islamic State onslaught, as the extremists have overtaken the capital of the nation’s western Anbar region. But “to read too much into this single fight is simply a mistake,” a Pentagon spokesman said Monday. The Islamic State chased Iraqi security forces from the city ...

Chechen Leader Says Tsarnaev Conviction Was a Plot by U.S. Spies

Foreign Policy - Mon, 18/05/2015 - 22:25
Ramzan Kadyrov says the U.S. intelligence community needed a fall guy for the bombing and found one in the form of Tamerlan Tsarnaev.

Orbán megint bemegy az EP oroszlánbarlangjába

Bruxinfo - Mon, 18/05/2015 - 21:57
Saját kérésére Orbán Viktor magyar kormányfő is felszólal majd az EP keddi plenáris ülésén a magyarországi helyzetnek szentelt vitán – jelentették be hétfőn Strasbourgban. A miniszterelnök majdnem két éve, a Tavares-jelentés vitája alkalmával vívott szócsatát utoljára a képviselőkkel.

EU-Uzbekistan

Council lTV - Mon, 18/05/2015 - 21:32
http://tvnewsroom.consilium.europa.eu/uploads/council-images/thumbs/uploads/council-images/remote/http_c96321.r21.cf3.rackcdn.com/15136_169_full_129_97shar_c1.jpg

EU-Uzbekistan relations are based i the Partnership and Cooperation Agreement entered into force in 1999. Uzbekistan is also part of the EU and Central Asia Strategy for a New Partnership.

Download this video here.

Categories: European Union

A V4-ek ellenzik a kötelező menekültkvótát

Bruxinfo - Mon, 18/05/2015 - 21:29
Akár a tíznél többet is elérheti azoknak a tagállamoknak a száma, amelyek ellenzik a kötelező menekültkvóták rendszerének bevezetését, ahogy azt múlt héten indítványozta az Európai Bizottság. A V4-ek közös álláspontjának értelmében kötelező kvóták helyett vissza kell kanyarodni az Európai Tanács áprilisi, önkéntes tehermegosztásról szóló döntéséhez.

Megindulhat a földközi-tengeri katonai műveletek tervezése

Bruxinfo - Mon, 18/05/2015 - 21:18
Az EU külügy- és védelmi miniszterei együttes ülésükön áldásukat adták egy leendő földközi-tengeri katonai misszió előkészületeire. Eldőlt az is, hogy a műveletek főhadiszállása Rómában, a vezetője pedig egy olasz tábornok lesz. A misszió mandátumának tényleges súlya azonban továbbra is nagyban függ attól, hogy az ENSZ BT mire ad majd pontosan felhatalmazást.

Döntés a földközi-tengeri katonai misszió létrehozásáról

Honvédelem.hu - Mon, 18/05/2015 - 20:50
Döntés született az EU-országok védelmi és külügyminisztereinek május 18-ai, hétfői tanácskozásán arról, hogy az unió haditengerészeti műveletet indít a Földközi-tengeren az Észak-Afrikából - zömmel Líbiából - Európába tartó menekülthullám megfékezésére, katonai erővel lép fel az embercsempészek ellen.
Categories: Biztonságpolitika

Reuters Launches Service to Track Sanctions’ Impact on Russian Companies

RIA Novosty / Russia - Mon, 18/05/2015 - 20:50
The service will provide companies and financial institutions with all necessary information on Russian enterprises impacted by sanctions.






Categories: Russia & CIS

Raindrops Keep Falling On My Nuclear Umbrella

Foreign Policy - Mon, 18/05/2015 - 20:49
By failing to help South Korea and Japan with small threats, the United States is casting doubts on its biggest commitment in the region.

L’UE lance l’opération Navfor Med contre le trafic de migrants

RFI (Europe) - Mon, 18/05/2015 - 20:35
Les ministres européens de la Défense et des Affaires étrangères étaient réunis ce lundi 18 mai à Bruxelles pour donner formellement le feu vert à l'opération Navfor Med. Objectif : décourager les trafiquants d'êtres humains à prendre la mer avec des milliers de migrants dans leurs embarcations, saisir leurs bateaux et les détruire.
Categories: Union européenne

Egyelőre nem lő az EU a líbiai hajókra

Eurológus - Mon, 18/05/2015 - 20:33
Hadihajókat küldenek a líbiai embercsempészekre, de ENSZ-felhatalmazás nélkül nem tehetnek sokat.

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